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March 2, 2021

Saputo to expand cheese production in UK after investment boost

Canadian dairy major Saputo is to expand a production facility in a major European market after receiving investment backing.

By Leonie Barrie

Canadian dairy major Saputo is to expand a cheese production facility in the UK after receiving investment backing of GBP3.2m (US$4.4m).

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The company will spend the money on new plant and machinery at its Davidstow creamery in Cornwall in south-west England to increase production of both cheddar cheese and ingredients for infant formula.

The money was invested by the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP) in the form of a grant from the UK government’s Getting Building Fund.

Davidstow employs more than 200 people and is home to the Cathedral City cheddar brand which has annual sales of more than GBP300m. The cheese is made from local milk, supporting around 330 dairy farmers across Cornwall and the surrounding region.

Last year, Saputo starting selling Cathedral City in Canada and the US for the first time.

Tom Atherton, president and chief operating officer of Saputo Dairy UK, said: “The awarding of this grant is welcome news for Saputo Dairy UK, our 200-plus employees in Cornwall, our 330 supplying farmers and all those who support our business in the south-west. 

“It enables us to strengthen the infrastructure at our Davidstow creamery to support the continued growth of our award-winning cheddar brands, both in the UK and abroad. The launch of Cathedral City in North America is just the first step in our ambitious international expansion programme.”

Explaining the thinking behind its investment, LEP director Clare Parnell said: “The Davidstow creamery is a major local employer whose supply chain extends across Cornwall and the wider region.”

Saputo inherited brands including Cathedral City through its acquisition of Dairy Crest in early 2019.

The company’s most recent financial results, which covered its third quarter to the end of December, showed a 3.3% fall in revenue to CAD3.76bn (US$2.97bn). Revenues from Saputo’s European division, which consists of its UK business, stood at CAD210.6m, compared to CAD196.1m a year earlier.

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Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

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